Kestra Holdings has recapitalized, with personal fairness agency Stone Level Capital returning to take a majority stake within the firm. Consequently, personal fairness agency Warburg Pincus will exit its majority funding, which it made at first of 2019. Oak Hill Capital, one other personal fairness agency, will retain its minority stake.
The transfer indicators a return of Stone Level, which first took a majority curiosity in Kestra in 2016 when the agency spun out of NFP. When Warburg Pincus invested in 2019, Stone Level stayed on as a minority proprietor. Oak Hill then took over Stone Level’s minority stake in 2022.
“The agency’s return as majority shareholder represents a robust vote of confidence within the administration crew, its mission and monetary companies platform,” Kestra stated in a press release.
“Stone Level’s experience and partnership beforehand helped propel us alongside a profitable path to establishing our distinctive worth proposition—to assist profitable wealth administration companies with full and deep worth whereas specializing in the life cycle of their entrepreneurial efforts,” stated James Poer, CEO of Kestra Holdings, in a press release.
The capital will go towards the agency’s recruiting efforts, service and know-how platform and acquisition enterprise, Bluespring Wealth Companions.
“With assist from Stone Level and Oak Hill, we’ll proceed scaling our platform and rising our experience in serving and buying established wealth administration companies in search of a monetization path that respects their legacy,” Poer stated.
The deal, anticipated to shut within the first quarter 2025, will not be anticipated to impression Kestra workers, advisors or operations, and there will probably be no repapering of consumer accounts.
Based in 1997, Kestra Holdings, which features a belief firm, RIAs, dealer/sellers and funding companies, at the moment oversees $117 billion in property beneath administration via 1,700 monetary professionals.
